Kudler Fine Foods Bsa/310

Frequent shopper programs can often be an excellent way to improve customer loyalty and increase business. However, there are concerns that need to be addressed when implementing such programs. Legal issues arise when a customer’s privacy rights can be potentially violated. Ethical Concerns arise from how the information collected is used. Information security must be taken into consideration to ensure that the information collected is protected and not exposed to the possibility of being obtained by other entities. By addressing these concerns and implementing policies and procedures to avoid any negative issues, Kudler Fine Foods will be able to implement a successful program that will be a benefit, and not a disaster, to their company.

When a company collects a customer’s personal information and data, that information is protected by privacy rights. According to Privacy Act Of 1974 And Amendments (2005), "No agency shall disclose any record which is contained in a system of records by any means of communication to any person, or to another agency, except pursuant to a written request by, or with the prior written consent of, the individual to whom the record pertains” (Conditions of Disclosure). In order for this information to be shared the customer must voluntarily agree to, by written consent, any type of “transaction” to occur. Any breach of such law can be grounds for the offended customer to begin a law suit with Kudler Fine Foods. Before a frequent shopper program can be implemented, Kudler must put in place ways to deal with privacy laws and other legal concerns that may arise. A privacy and confidentiality agreement form must be drafted and signed by every customer who wishes to participate in the frequent shopper program.

Personal information given by a customer to business can be viewed as an agreement between parties to use the information in an ethical fashion. As a business, the goal of having this information is to get more business....